A List of Business Relief Resources Amid Coronavirus

Justin Biel

Trends Editor at Grow Wire

Monday, March 30, 2020

Businesses are facing extreme economic challenges and uncertainty due to the coronavirus. In response, financial relief and loan programs at the federal and state level aim to meet the needs of small businesses, which total over 30 million and account for 99.9% of all businesses in the U.S., per Fundera.

Beyond federal and state governments, several nonprofits and private organizations are getting involved as well, developing additional relief programs and donating funds.

The list below features major sources of financial relief for businesses struggling amidst the coronavirus. It will be updated regularly.

A relief measure under The CARES Act, the Paycheck Protection Program, allocates 100% federally-backed loans to qualifying businesses to cover operational costs. The program is available to businesses with under 500 employees (including sole proprietorships, independent contractors and self-employed individuals), with a maximum loan amount equaling a company’s average monthly payroll costs during the one-year period before the date of the loan. Other program features include loan forgiveness, no collateral or personal guarantees, waived loan fees and deferred payments.

Business owners can apply for one of these loans through local lending institutions, a process that hasn’t always flowed smoothly since its launch on April 3. Our guide can help you through it.

On April 9, the Federal Reserve Board announced details of the Main Street Lending Program to support small and medium-sized businesses. To qualify for a loan, businesses must have fewer than 10,000 employees or less than $2.5 billion in annual revenue. They also must meet requirements around keeping employees on their payroll and rehiring any workers they previously laid off.

Los Angeles: The Small Business Emergency Microloan Program is offering $5,000 - $20,000 loans with interest rates from 0-3% for companies with fewer than 100 employees “that have been negatively impacted” by the outbreak.

The global microlending site is supporting U.S. businesses with a program that offers expanded eligibility, making it easier for businesses to get a loan. For these, it’s raising its loan maximum from $10,000 to $15,000 and giving businesses a longer grace period for repayment.

The organization focused on small business loans has developed a COVID-19 Relief Program to provide loans to 500 small business owners who do not meet requirements for public relief programs. It’s also expediting the process for businesses in Illinois and Indiana to open a line of credit for up to $25,000.

Even big companies facing their own set of problems are putting programs in place to help smaller businesses get through the coronavirus challenge. Inc has put together a list of private companies helping in the relief effort, which includes:

The company’s Recovery Fund is channeling grants of up to $10,000 to small businesses that are “facing immediate financial pressure because of COVID-19 -- especially entrepreneurs of color, women-owned businesses and other enterprises in historically underserved communities.” The first round of applications is closed, but you can register to get updates when the next one launches in mid-April.

GoFundMe

The crowdfunding platform is providing matching grants of $500 to small businesses who use the tool to fundraise in the wake of COVID-19. To receive a grant, business owners must launch a GoFundMe campaign with a specific hashtag and raise $500 from friends, family and connections.

🙋‍♀️As businesses face speed bumps due to the coronavirus, we're here to help with the nitty-gritty -- from finding financial relief to building a business continuity plan. Got a topic you'd like us to cover in an upcoming article? Let us know.